I’m currently President of the Minnesota State Auctioneers Association, serve on a variety of state committees, serve on an advisory board to Proxibid, and serve the National Auctioneers Association on two committees (technology and futures). Within this myriad of roles, I’ve recently had the opportunity to look to the future and prognosticate what it will look like. I’ve got to admit, it’s near impossible to tell. However, in the past months and especially in the last week, I keep coming back to an idea about how to structure an association. I’m not sure if it would ever work. Yet, it’s just crazy enough that it might work better than one could imagine.

Couple the crazy idea with my current reading of What Would Google Do? by Jeff Jarvis, and I’ve got a recipe for an association that might just be radical enough to work, or just radical enough that it would fail due to lack of revenues. I’m not sure, and figure this is a great place to get my thoughts out onto paper for your commentary.

So, let’s begin.

First, let’s get the assumptions about associations out of the way. As associations, we’re driven primarily by membership dollars raised through annual dues. We provide value by offering educational offerings through conferences and seminars (at an extra cost above membership dues), and provide monthly periodicals (digital in some cases, print in others) that seek to provide education (included in the membership dues) through articles. We’re inherently afraid that if we give our educational content away, members will have no reason to belong, and will stop paying dues. As a result, all information is locked behind the proverbial membership wall. Plus, if you want to access past educational offerings, you need to pay extra for that (in the form of DVDs or online streaming). All areas that can be tapped for revenue, even if it’s not practical, is exploited.

Now, let’s scrap the model and start over. Let’s assume we’re starting from a complete clean slate, could do what we wanted, and had ample capital to form the basis for our association. Here’s how I would envision the structure.

Members would pay a modest fee. In return they would receive a monthly, or bi-weekly, educational offering digitally. Perhaps once a month it was a newsletter containing informative articles, and the other instance a month was an educational podcast. The association would use it’s membership as the basis for the educational offerings, and use the sphere of influence of its members to find additional educational topics and speakers. There would be an annual conference, and additional symposiums throughout the year. These additional offerings would be premium in nature, and delve deep into the business. All educational offerings not offered at conference or a symposium would be available to anyone – member or not. Additional educational articles would also be written on a twice weekly basis. All this content would be on a site specifically linkable, commentable (sic), shareable, and fully archived.

This model would serve many purposes. It would encourage auctioneers to congregate online at one source for educational offerings and discussions. The association would truly be serving the industry, and not just the member population of the industry. In addition, auctioneers and non-auctioneers would look to the site for informative guidelines, information and education about the auction industry. The association would gain influence and relevance that is lacking in the “hide behind the member wall” mentality.

You may be asking, why would you want to be a member? Simple. The educational offerings offered to all comers would be top notch but pale in comparison to the in-depth, rich aspects of the educational offerings offered to the members. Members would also have access to additional member only educational offerings, and in depth offerings by leading experts from within and outside of the industry. Only members could attend the conference and additional symposiums, and all conference and symposium education would be archived for members to access at any time at no additional charge but not available to non-members.

The short term and long term implications may be that association membership numbers dropped considerably. However, the influence of the association would increase as the entire auction community began to look to one source for information. The more and more I read and interact with the social aspects of the web, and look to the future and see a world based on social interactions and relationships, I can’t help but wonder if the application of a more porous membership wall would lead to a more unified, influential standing within the community.

Last night, Mike and I were sitting in the office discussing traffic to our website for our two upcoming auctions.  They both are doing well.  However, in the conversation, I noted to him that for the past 30 days, search engines have sent 51.75% of our traffic, 16.71% has come from referring sites, and the remaining 23.40% has come from direct visitors to our site.

That peaked my interest, and this morning I decided I’d take a look at the numbers for 2008 year-to-date.  The results surprised me a bit:  33.61% direct traffic, 25.64% referring sites, and 40.75% search engines (google makes up 35.08% of the total or 86% of all search engine traffic).  The results got me to thinking.

In a typical advertising campaign, we expend 90% of our ad dollars to generate the 33.61% direct traffic, and 10% to generate the referring sites traffic, and 0% to generate the search engine traffic.  Yet the results seem to show a completely different result than what one might expect.  Note, realize I’m generalizing this over the year to date numbers.  In a typical year we are running about 20 active marketing campaigns (about two weeks in length each, with some overlap), and the other weeks we are running passive marketing campaigns.

I’m wondering if we kicked the advertising spend around a bit, say 80%, 10%, and 10%, if we’d see increased traffic to our website?  I’m guessing we’d see increased traffic.  I’m wondering if that traffic would convert to a respectable ROI.

Increasingly, as general newsprint becomes less influential, and web becomes more influential, and specifically web searches, it is going to be important for small companies to make the transition.  Now, it shouldn’t be an overnight, immediate shift.  However, a slow steady trend to 10% advertising directed at the search engine traffic that generates 40.75% of our traffic would be beneficial to our company and companies of similar size.

MediaBuyerPlanner has the breakdown of the recent 2008 State of the Marketer report.  Highlights include:

Online advertising spend is expected grow at a rapid rate, with 90 percent of marketers saying they will continue to increase their direct online advertising budgets – and 15 percent saying they will “radically” increase online ad spend.

Moreover, some 78 percent of marketers say they will increase their social media spend; 74 percent say they will increase their direct email spend; and 65 percent say they will increase their mobile texting/SMS spend.

Overall, more than 40 percent of marketers have radically increased their budgets for online advertising from three years ago.

If you haven’t already figured it out, big business is moving online in a big way in the next half decade.  What this means for the traditional marketing mediums of newspaper and magazine, I’m not sure.  However, I do know it means our marketing of auctions and real estate needs to continue to evolve towards an increased online presence.

While we’ve added a facebook page for our company, and have discussed a regular blog feature to our website, we’ve not yet begun to spend significant amounts in direct online advertising.  We do include our higher end properties in large targeted online marketing campaigns, and our smaller projects all feature targeted online marketing.  However, In order to stay competitive, and ahead of the curve, it will increasingly become important to move our marketing dollars from newspaper and magazine mediums to online mediums.

To illustrate this point, our website has received over 18,000 unique visitors in the past 9 months.  Of this traffic 30% came directly to the site.  The other 70% came to the site either by a search engine or referral from another web site.  In fact, our top five traffic sources are: Google (31% of all traffic – with 8 of the top 10 search words our business name or an iteration of the name); direct traffic (30%); midwestauctions.com (5% – an online auction portal where all our auctions are advertised); kstp.com (5% – a television story in which I was interviewed concerning the auction of the Armstrong-Quinlan Mansion); and oldhouses.com (4% – an online ad campaign for the Armstrong-Quinlan auction).

If we spend 70% of our marketing dollars in print media that drives 30% of our online traffic, and 30% of our marketing dollars in online media that drives 70% of our online traffic, what would the results be if flipped the spending?  Would we drive the growth of our business?  Would we reach an entirely new clientele that would sustain our growth, and push our company to the next level?